StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

The Economic Development of an Area - Assignment Example

Cite this document
Summary
The paper 'The Economic Development of an Area' presents uneven development that refers to the lack of uniformity in the development, economic growth, or wealth in areas that may be found within a city, or between urban and rural areas, or between regions…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful

Extract of sample "The Economic Development of an Area"

ECONOMIES OF CITIES AND REGIONS REVISITED Question 1 Uneven development refers to the lack of uniformity in the development, economic growth or wealth in areas that may be found within a city, or between urban and rural areas or between regions. In other words, this term asks the question as to why a region or area is wealthier than other areas. The mechanisms that may result in uneven development are sometimes attributed to the natural state of affairs or to the type of society that cause the development of an area. In the first mechanism, uneven development is blamed on nature, that is, that nature has not been fair in endowing places and regions with more or less equal resources. Thus, some countries have extensive deposits of rare minerals whilst others are completely barren. There are objections to this line of reasoning, however – one that can be illustrated by concrete examples. For example, Japan and Singapore have no extensive mineral deposits, yet they are two of the richest and most progressive states in the world. On the other hand, if uneven development is attributed to the society living and developing the area, this does not explain why some societies continue to use the same technology and did not advance although they had exposure to other societies from which they could have enhanced their technology and knowledge Coe et al (2007). Coe et al (2007) theorised that uneven development is a natural byproduct of the mechanisms of capitalism. Capitalism follows an ‘ebb and flow of investment’ as a natural course as it seeks new markets or even old markets to redevelop. As the need to seek new markets emerge, a new landscape emerges where the old market becomes unprofitable and fades away, whilst the new market becomes the profitable ones. Question 2 The world is said to be figuratively shrinking because distance, time and space no longer poses great obstacles to movement and communication. In other words, getting from point A to B, regardless of the distance between them, is not a big deal anymore as it used to be. Thus, today one can be sitting on a beach in Australia, but tomorrow that person can be walking the streets of New York. The shrinking world is made possible by advances made in travel, technology and the internet. New road networks, faster aircrafts and the internet are just some of the new advances in the modern world that is figuratively shrinking the world. The shrinking process, according to Leyshon (1995) involves several elements: the overcoming of the friction of distance, overcoming isolation as more places are brought in contact with one another, and the acceleration of life pace. Although this phenomenon has been happening for a long time now, it began picking up speed since the last 150 years, particularly after the revolution of transport and communications in the 19th century. The time-space compression phenomenon has resulted in the so-called ‘human extensibility’ where physical presence is no longer a must to conduct transactions. Thus, items can be bought and sold over the internet without the buyer and seller physically meeting, and jobs can be completed without actually being physically present in the workplace as conferences can be conducted over the internet or paper works can be sent by email or fax. Nonetheless, geography has not become less relevant because of time-space compression because this phenomenon is, in the first place, relative to the wealth and economic resources of regions. In some regions, such as the first world countries, the impact of the phenomenon is heavily felt, but in countries that are economically struggling, the phenomenon is hardly felt (Leyshon 1995). Question 3 Since the 1980s, manufacturing in Australia served the chief purpose of creating secure employment. This coincided with federation and the decision of the Australian government to adopt trade liberalization as well as currency appreciation measures as a response to gobalisation and resource boom. The effect of this measure has triggered a slow decline of the manufacturing sector due to the devaluation of Australian labour. This created a domino effect that started with de-industrialisation or the shift away from manufacturing. De-industrialisation is also triggered by advances or changes in technology, restructuring of labour processes, declining demand for goods, and the relocation of manufacturing sites for cost cutting. De-industrialisation resulted in job losses and increasing unemployment rate. It has also contributed to the so-called two-speed economy and uneven development (Weller and O’Neill 2014). In Sydney, the same impact of de-industrialisation was felt considering that it used to constitute more than 30% of the country’s manufacturing production. A restructuring of the city ensued, and although the city’s industrial area have been maintained, those outside the area have been declining. To substitute for the continued deindustrialisation, there was a shift to property development, warehousing, trucking, and offices in the affected areas of the city. The industrial; restricting of Sydney resulted in net manufacturing growth despite the recession in the 1980s (Fagan 2000). In addition, the growth of the information services in Sydney was able to save it from the effects of deindustrialisation. These services became relevant in finance and insurance, property and business, administration and educational services (Fagan 2000). De-industrialisation, particularly in large first world cities, is also linked to the new international division of labour or NIDL, which accompanied the advent of globalisation. NIDL entails the relocation of manufacturing to developing countries where labour costs are comparatively cheap. Thus, big companies like Apple, bring their manufacturing to China or some other Asian country (Munck 2002). Question 4 Neoliberalism is the term given to a set of economic policies that is characterised by a shifting of economic determinism from the public to the private. It is strongly associated to the laissez-faire doctrine of Adam Smith, except that the government still plays a role in guiding economic measures although in a general attitude of hands-off. The influence of neoliberalism can be found in new governance structures and strategies where local leadership, creativity and innovation are being highlighted and associated with the economic landscape as government recedes into the background. A manifestation of the neoliberalism approach in urban centres is a growing population of creative people, such as high technology workers and gay people (Beer 2012). In keeping with the principles of neoliberalism, the regional approach in Australia has likewise shifted from a highly centralised approach to one of extensive consultation with local leaders and authorities. The pursuit of this approach necessitated the use of case studies or studies that take into account local conditions and circumstances. Research is, thus, focused on the local level and an extensive look into ‘locality-specific potentials’ (Beer 2012). Examples of spatial inequalities brought about by neoliberalism are uneven urban development, where some areas are developed and some have been left to deteriorate. Since neoliberalism is underpinned by the laissez-faire approach where market forces are left to control the economic direction of a region, government intervention is kept to a minimum or none at all. This has resulted in areas that are declining socially and economically because of their inability to keep up with the times because of certain conditions brought about by deindustrialisation, among others. Question 5 Some of the characteristics of a global city are: serving as command centres for the global economy through the heavy presence of financial institutions, such as banks; provides a point for the free flow of information; open to the free flow of commodities, ideas, information, money and information; usual destination for highly skilled migrants and skilled information workers from Latin America and the Asia-Pacific regions, and; heavily associated to a culture identified with the cyberspace (Fagan 2000). Global circuits, according to Sassen (2009), are the key features of a global economy that criss-cross the world connecting one city to each other serving as intercity infrastructure in the globalised world. These circuits are varied, but connect cities that are similarly situated economically. As an example, Sassen cited Mumbai, London and Bogota as constituting a real-estate development global circuit and Brazil, Kenya, Indonesia and New York as a coffee global circuit. A city becomes part of a global circuit depending on whether it is producing, trading or financing. Cities specialised by developing its capabilities that are available to it. In this manner, the uniqueness and depth of such capabilities will be of value to global firms in accordance to their particular needs for a given time and situation (Sassen 2009. pp. 5-9). Citing the Loughborough group, Hall (2001) enumerated the three measures of a city’s global-ness: content analysis of leading newspapers; determining personnel migration, and; detailed analysis of producer services (p. 63). Sydney is a global city because it manifests most of the indicia of a global city as enumerated by Sassen. It has extensive presence of financial institutions, commodities and information freely flow, it is a destination for many highly skilled immigrants, among others. Question 6 The two-speed economy refers to a contrasting economic growth in the same region. The Australian two-speed economy, thus, is used in the context of the economic boom being experience by regions where mining is bringing in economic resources, such as Western Australia contrasted to the languishing and weaker economic growth currently being experienced in non-mining states, such as Victoria, NSW, Tasmania and South Australia. Some of the drivers of economic growth are adaptation and capacity for transition. Thus, a city that used to rely on manufacturing can still survive and grow if it is able to adapt to changes and has the ability for restructuring. Another driver of growth is economic diversification or the state of engaging in a multiple and unrelated economic activities so that when an industry declines, the region has other industries to depend on for economic growth (Hogan and Young 2014). The impact of neoliberalism depends on the capacities and resources of regions. In regions that have capacities, the approach can spur creativity and productivity, but in comparatively poorer regions, the total absence of government intervention is counter-productive. Government should, thus, have regional policies that must take into account the unique resources and conditions of the region. The rise of call centres have been precipitated by advances in communication technology and information services. The decision to locate these centres to remote regions is due to the comparatively low cost of operating them in those regions and the availability of manpower that have the skills and the willingness to do the job (Schatz 2007).. Question 7 Shrinking cities, according to Hollander (2010), are cities, experiencing notable population decline. About 20 cities in the US have been determined to be shrinking cities. In addition, shrinking mostly occurs in former heavily industrialised cities, such as those in England, Germany, North America, Italy, France and the Netherlands. Cities shrink for a number of reasons. One reason is deindustrialisation or the process whereby formerly industrialised cities experience decline due to economic crises, destruction in times of wars, and out-migration of the middle class (Rieniets 2010). Te effects of population decline are varied, according to Hollander. In some it can mean abandoned building that contributed to urban decline and in some, it can actually increase the quality of life as there are less noise pollution, less crime and less distractions (2010). Question 8 Yes, regional policy has a place in the scheme of things. This has been proven by the Australian experience in the 1980s and the 1990s where a tough neoliberalist approach in regions resulted in failure and political consequences. It has been determined by research that the government needs to put in place a limited interventionist policy in regions because a rigid neoliberal approach tended to worsen spatial inequality and disadvantage certain portions of the population within a region (Tonts 2005). In addition, Tomaney (2012) cited the place-based approach policy being successfully used in Europe as a regional policy. This approach focuses on the strength of the region and centers its development on those strengths. Moreover, Storey (2001) noted that a regional policy that uses micro-policy instruments is important in regional development. According to Tonts (2000), rural areas in Australia were negatively impacted by economic changes in the last 20 years. These impacts included rising unemployment, depopulation, contraction of economic activities, and worse, the breakdown of social institutions and networks. All these changes were prompted by decreasing farm incomes, contraction of economic activities and agricultural reforms that departed from socio-spatial considerations to economic efficiency – in other words, economic restructuring that tended towards the neoliberalism approach. As a result, there has been a notable decline in small country towns that had been dependent on agriculture to sustain their economy. This decline has affected about 40% of Australia’s rural areas, according to Tonts (2000), with 90% of them having a population of less than 5000. However, rural communities near the coast and near metropolitan areas are showing a contrasting trajectory of rising population (Tonts 2000). In contrast, population growth is being experienced selectively in particular areas of the country. These areas or regions include metropolitan computer beds or to coastal and scenic areas, such as the coastal areas of Victoria, Queensland and NSW, which contrasted with the decreasing population in inward regions. In addition, population growth is also being experienced by capital cities. In Western Australia, for example, population growth can be observed near the coastal areas, particularly in Perth, but a notable decreasing population is simultaneously occurring in its inland regions. Question 9 Multifunctional countryside refers to the transition of rural areas from a primarily agricultural or primary production to a more expansive range of activities. This phenomenon is spurred by changing social values, emergence of alternative rural land uses, and agricultural overcapacity (Jones and Shaw 2012). In addition, agriculture in Australia is changing resulting in economic and social upheavals. Agriculture is being changed as a result of declining prices in agricultural products, farm mergers and expansions, the use of automation and machines, and the migration of the population from agricultural lands to urban areas. Festivals are real economic activities because they contribute to the revitalisation and development of localtities. They promote tourism, among others, and have a positive impact on communities. According to Murray and Dunn (1996), the organisation of cultural events is as vital as economic revitalisation strategies because they raise the quality of life in the communities and gives a sense of achievement and involvement to the people (cited in Tonts 2000). In that sense, festivals, along with other measures, can help a town’s decline because social developments as companions to development minimises divisiveness and enhances community well-being (Tonts 2000). References Beer, A 2012, ‘The Economic Geography of Australia and Its Analysis: From Industrial to Post- Industrial Regions,’ Geographical Research, vol. 50, no. 3, pp. 269–281 Coe, N, Kelly, P and Yeung, H 2007, Economic geography: a contemporary introduction, Blackwell Publishing Fagan, B 2000, ‘Industrial change in the global city: Sydney’s new open spaces of production,’ in Connell, J (ed) Sydney: the emergence of a new world, Melbourne: Oxford University Press, pp. 144-77 Hall, P 2001, ‘Global city-regions in the twenty-first century,’ in AJ Scott (ed) Global city- regions: trends, theory, policy, Oxford University Press, pp. 59-77 Harvey, D 1989, The Condition of postmodernity: An inquiry into the conditions of cultural change, Oxford; Blackwell, pp. 173-188 Hollander J 2010, ‘Can a city successfully shrink? Evidence from survey data on neighborhood quality,’ Urban Affairs Review, vol. 47, no. 1, pp. 129-141 Hogan, A and Young, M 2014, Rural and Regional Futures, Routledge Jones, R and Shaw, B 2012. Geographies of Australian Heritages: Loving a Sunburnt Country? Ashgate Publishing, Ltd Leyshon, A 1995, ‘Annihilating space?: the speed-up of communications,’ in Allen, J and Hammet, C (eds) A shrinking world?; global unevenness and inequality, Oxford: Oxford University Press, pp. 11-54 Martinez-Fernandez, C, Wu, C, Schatz, L, Taira, N and Vargas-Hernández, J 2012, ‘The shrinking mining city: Urban dynamics and contested territory,’ International Journal of Urban and Regional Research, vol. 36, no. 2, pp. 245-60 Munck, R 2002, Globalization and Labour: The New 'Great Transformation', Zed Books McKinnon, D and Cumbers, A 2011, Introduction to economic geography: globalization, uneven development and place, 2nd ed., Routledge Peck, J and Tickell, A 2002, ‘Neoliberalizing Space,’ Antipode, Oxford: Blackwell Publishers Rieniets, T 2009, ‘Shrinking cities: Causes and effects or urban population losses in the twentieth century,’ Nature and Culture, vol. 4, no. 3, pp. 231-254 Sassen, S 2009, ‘Cities in today’s global age,’ SAIS Review, vol. 29, no. 1, pp. 3-34, The Johns Hopkins University Press Schatz, L and Johnson, L 2007, ‘Smart City North: economic and labour force impacts of call centres in Sudbury, Ontario,’ Work organisation, labour & globalisation, vol. 1, no. 2, pp. 116-130 Storey, K 2010, ‘Fly-in/Fly-out and Fly-over: Mining and regional development in Western Australia,’ Australian Geographer, vol. 32, no. 2, pp. 133-148 Tomaney, J 2012, ‘Is there a case for regional policy in Australia?’ Australasian Journal of Regional Studies, vol. 18, no. 1, pp. 150-156 Tonts, M 2000, ‘The restructuring of Australia’s rural communities,’ in B Pritchard and P McManus (eds) Land of discontent: the dynamic of change in rural and regional Australia, University of New South Wales Press, Sydney Tonts, M and McKenzie, F 2005, ‘Neoliberalism and Changing Regional Policy in Australia,’ International Planning Studies, vol. 10 (3-4), pp. 183-200 Weller, S and O’Neill, P 2014, ‘De-industrialisation, financialisation and Australia’s macro- economic trap,’ Cambridge J Regions Econ Soc, vol. 7, no. 3, pp. 509-526. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Economic Development of an Area Assignment Example | Topics and Well Written Essays - 2250 words, n.d.)
The Economic Development of an Area Assignment Example | Topics and Well Written Essays - 2250 words. https://studentshare.org/macro-microeconomics/2064794-the-economic-development-of-an-area
(The Economic Development of an Area Assignment Example | Topics and Well Written Essays - 2250 Words)
The Economic Development of an Area Assignment Example | Topics and Well Written Essays - 2250 Words. https://studentshare.org/macro-microeconomics/2064794-the-economic-development-of-an-area.
“The Economic Development of an Area Assignment Example | Topics and Well Written Essays - 2250 Words”. https://studentshare.org/macro-microeconomics/2064794-the-economic-development-of-an-area.
  • Cited: 0 times

CHECK THESE SAMPLES OF The Economic Development of an Area

Economists Change of Approach

Overall development of an economy is not possible if there is a considerable percentage of poor among the population.... development of cities and high rise buildings were considered to be the picture of development.... Reasons for Change of Approach Rural development mainly refers to the role of agriculture for the development of the nation.... Poverty is seen as a drawback for the development of a nation.... economic development Economists' change of approach Yesterdays were the period of economists who were focused on industrialization and urban development....
14 Pages (3500 words) Essay

United Arab Emirates: Review of economic development

This strategy is made with a view to reduce the role of public sector in the economic development.... This strategy is made with a view to reduce the role of public sector in the economic development.... According to the paper, the export revenues of crude oil in the UAE has been used for the development of infrastructure, health care and education.... The oil revenue is judiciously used for the development of infrastructural facilities, general economic growth and social welfare of the people....
11 Pages (2750 words) Research Paper

Development of Rural Economy

The first part of this paper talks about the development of any economy and relates it to how these steps could be trickled down to both the rural and urban areas.... EXECUTIVE SUMMARY: This paper has been written in recognition of a development economics issue which concerns the economies and nations throughout the world.... However, this paper pays particular attention to the issue that economic growth or development experienced by most of the countries in the world is not evenly distributed....
33 Pages (8250 words) Thesis

Ecologically Sustainable Economic Development

The paper "Ecologically Sustainable economic development" highlights that newer irrigation systems were to conserve water.... Requirements of both ecological balance and economic development must be satisfied.... Hierarchial management of sustainable development is necessary and it must be able to result in the essential performance of main requirements, satisfying the various interests.... Voluntary cooperation is evident in a conviction which is actually a psychological approach and the best in sustainable development (Ougolnitsky, 2009, p....
10 Pages (2500 words) Essay

Development Economics

n light of such emerging situations, the need to analyze the economic development and its repercussions on the agricultural sector rightly emerges.... economic development is the foundation of progress and prosperity that characterizes the developed world.... It is therefore imperative to realize that economic development can only exist after proper economic growth.... In most developing countries, it is a common occurrence to hear about great advances in economic growth but unfortunately, it is never accompanied by economic development....
5 Pages (1250 words) Admission/Application Essay

Business as a bridge between social and economic development

Utilities such as roads and other infrastructure also benefit from the emergence of business/businesses in an area as the increased flow of traffic in that area attracted by the business leads to the improvement of these amenities.... All these developments are brought about by the emergence of a business in an area as well as the obvious economic developments that arise from its financial provisions (Luis and David 20).... However, economics and social goals do not always go together for at times the achievement of one may mean the relegation of the other to a back seat, and this "Business as a Bridge between Social and economic development" Economic and social developments are two of the main achievements that a society aims to continually improve as time progresses on....
2 Pages (500 words) Assignment

The Economic Value of Sports on National Development

Moreover if a popular team is hailed from an area it often reflects through the areas better economic performance; this might be due to more exposure that the concerned area gets through that team in all most all the spheres.... In today's world where there is a perfect integration of local and global environment sports impart a significant economic value to the national development of any country of the world.... Sydney and Atlanta Olympics were highly associated with the macro economic development plans of Australia and United States of America respectively and left positive impact on the business environment....
4 Pages (1000 words) Research Paper

Economic History

The main changes that have occurred in the development of world economies have changed with the political rise and fall of power.... The year 1500 was one of the noted dates, specifically as Venice became the central arena with developments around the Mediterranean because of the rich resources and trading centers in the area.... The access to Venice was also easier to reach, making it a conducive area for trade.... The area went through both Europe and Africa and reached ports that were from India, which provided more opportunities for trade....
6 Pages (1500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us